Consider the following statements: Human capital formation as a concept is better explained in terms of a process which enables 1. individuals of a country to accumulate more capital. 2. increasing the knowledge, skill levels and capacities of the people of the country. 3. accumulation of tangible wealth. 4. accumulation of intangible wealth. Which of the statements given above is/are correct?

Human capital formation focuses on enhancing the knowledge, skills, and abilities of the population (Statement 2), which represents the accumulation of "intangible wealth" (Statement 4) rather than physical assets. Statements 1 and 3 are incorrect because they describe the accumulation of physical capital and tangible wealth, such as machinery or buildings, which are distinct from human-centric development. The core concept tested is the definition of Human Capital as a qualitative, intangible resource that increases a nation's productive capacity through its people.